Page:The Wisconsin idea (IA cu31924032449252).pdf/98

 insurance commissioner as important as any in the state. It has been gradually recognized that the problem of poverty and its prevention must centre to a large degree around the question of insurance.

The advance in insurance legislation cannot be better described than in the words of the commissioner himself. Says Mr. Ekern:—

"The idea underlying the insurance legislation of Wisconsin is that the policy-holder is entitled to have placed before him in intelligible form the exact facts with regard to his insurance, and to insist that the companies shall, in every respect, live up to the true spirit and intent of their policy contracts, and that insurance should not be permitted where the expenses exceed a legitimate proportion of the insurance benefits furnished.

"The Wisconsin laws limit the amount which may be added to the premiums of life insurance companies for expenses, and limit the expenses to the amount so collected. The effect of the first requirement has been to lower insurance premiums in this state in some instances as much as $5.54 per $1000 of insurance per year; and the effect of the latter has been to reduce the expenses generally of insurance companies doing business in the state, so as to enormously benefit, not alone new policy-holders, but old policy-holders, in both their annual and deferred dividends. The money which companies heretofore took from the savings of old policy-holders to pay extravagant commissions and other expenses are now being returned to the policy-holders to whom they belonged.

"The Wisconsin law requires that every stock company annually relicensed in the state, which purports to transact a participating business, shall file a statement setting forth the share